The liquefied natural gas (LNG) project in Texas invested in by Hanwha Group is considering across-the-board measures to shorten the construction period. With the Middle East crisis disrupting global LNG supply and demand, the intent is to cut the schedule of the ongoing LNG project to move up the start of LNG supply.
Hanwha Group has invested equity in U.S. LNG corporations NextDecade and is taking part in the world's largest LNG export project. There is a strong chance it will expand its business scope by having affiliates directly purchase or use LNG from the gas field.
On the 7th, according to the Federal Energy Regulatory Commission (FERC), the Rio Grande LNG project submitted a request on the 3rd (local time) seeking approval to increase staffing and allow night and weekend work to speed up construction.
The Rio Grande LNG project is a liquefaction and export facility for natural gas under construction in the Brownsville Ship Channel area of southern Texas, and is one of the world's largest. After a final investment decision (FID) last year, five production units (trains) are being built simultaneously. The goal had been to produce LNG from Train 1 in the first half of next year, but more rapid startup is now the target.
The Rio Grande LNG project submitted a request to boost the maximum construction workforce from 5,225 to 7,500 and to allow construction 24 hours a day, seven days a week. With five trains being built at once, the site is extremely crowded, it said, making additional staffing and night and weekend work unavoidable to prevent clashes between work processes.
Disruptions to global LNG supply and demand caused by the closure of the Strait of Hormuz amid the Middle East crisis were also cited as grounds for shortening the schedule. The request included the need to produce LNG from the Rio Grande LNG project as soon as possible to protect U.S. energy security and support allies.
The Rio Grande LNG project is one that Hanwha Group has invested in. Hanwha Group, through Hanwha Impact and Hanwha Aerospace, is the second-largest shareholder of NextDecade, the developer of the Rio Grande LNG project, with a 22.73% equity stake, and is exercising influence. It is estimated to have投入 several hundred billion won since 2022 to secure NextDecade equity.
Hanwha Group is working to build a global LNG value chain. In February, Hanwha Aerospace signed its first LNG distribution deal, agreeing with U.S. LNG producer Venture Global to purchase 1.5 million tons of LNG annually for 20 years. It may also purchase LNG produced by the Rio Grande LNG project.
Cooperation on LNG with other affiliates is also possible. Among affiliates, Hanwha Ocean has capabilities in building infrastructure such as LNG carriers and floating liquefied natural gas production facilities (FLNG). Hanwha Energy has LNG power generation and operation capabilities. Hanwha Shipping LLC can handle LNG maritime transport.
A Hanwha Aerospace official said, "We are building an LNG supply chain by investing in U.S. LNG developers like NextDecade or by directly buying and selling LNG," and noted, "Various benefits are expected from the development of LNG projects."